Operating profits at the Wright Group last year declined by 65% to €3.18m due to expansion costs.
The group - led by CEO Michael JF Wright - operates outlets in Dublin Airport and across 20 locations in Ireland and has expanded in recent weeks with the opening of the MJ Wright pub on Dublin's South Great Georges Street in a four storey property that previously housed Dylan McGrath's Rustic Stone restaurant.
Documents filed with the Companies Office earlier this year confirmed that Wright Group firm, Mink Fusion Ltd, paid out €275,000 for the leasehold interest of the building.
The new consolidated accounts for the group filed by Treasure Trail Holdings Ltd show that operating profits declined as revenues increased by 11% from €49.04m to €54.6m in the 12 months to the end of September 2024.
The directors state that the company "delivered a strong performance during the period, with turnover increasing, driven by the successful opening of new units and continued solid trading across our existing portfolio".
They state that "although turnover increased, profit for the year declined. This was anticipated and primarily reflects a number of strategic investments made to support future growth and strengthen the business for the long term".
In their report, the directors refer to the group's investments including new site opening costs where up-front costs linked to the opening and establishment of new locations stating that they are expected to deliver increased contribution as they mature.
They state that the sale of the Airside unit in Swords has removed rental income profit from the trading portfolio.
The directors state that since year end, "the company achieved notable milestones that reinforce our growth trajectory, strength of our brand and operational performance".
In reference to the MJ Wright pub, the directors state that this further expands "our footprint in a key trading location and providing additional growth potential for the year ahead".
The directors also refer to the group securing an 11 year contract award at Dublin airport "securing our presence there for the long term and reflecting the strength of our brand and operational performance".
The directors state that "these developments, coupled with the strategic investments made during the period, position the company for sustained growth and improved profitability in future years".
"With strong foundations now in place, we are well positioned to convert recent investments and contract wins into long-term value for stakeholders," they said.
The group recorded a pre-tax profit of €2.48m after net interest payments of €664,896 are taken into account.
Some of the group's businesses include the Marqette food hall at Dublin airport, the UCD Food Hall, Hogs and Heifers in Swords and the Anglers Rest at Strawberry Beds, Dublin.
The directors state that the group's earnings before interest tax depreciation and amortisation (EBITDA) last year was €5.39m.
Numbers employed by the group increased from 490 to 570 as staff costs increased from €12.99m to €16.39m.
Aggregate directors’ pay last year increased from €604,354 to €709,740.
The pre-tax profit also takes account of combined non-cash depreciation costs of €2.23m.
The group recorded a post tax profit of €2.48m after incurring a corporation tax charge of €411,503.
At the end of September last, the group had shareholder funds of €13.94m. The group's cash funds decreased from €7.58m to €6.94m.
Reporting by Gordon Deegan
